Noble (NE) Q4 2024 earnings summary

Executive summary

• Completed the Diamond Offshore acquisition, with over 50% of $100 million targeted synergies realized and integration progressing on track.

• Q4 2024 was the first full quarter post-acquisition, delivering strong operational and financial results, including $319 million Adjusted EBITDA.

• Over $575 million returned to shareholders in 2024 via dividends and buybacks, with cumulative returns since Q4 2022 exceeding $900 million.

• Secured $525 million in new contracts since the previous quarter, expanding backlog to $5.8 billion.

• Retired two cold-stacked drillships and removed additional rigs from the fleet to focus on core assets and save $20 million annually in stacking costs.

Financial highlights

• Q4 2024 total revenue was $927 million, up from $801 million in Q3; contract-drilling services revenue was $882 million.

• Q4 Adjusted EBITDA was $319 million (34% margin); net income was $97 million (EPS $0.59); free cash flow was $2 million.

• Full-year 2024 revenue reached $3.06 billion; Adjusted EBITDA $1.06 billion; net income $448 million.

• Year-end cash and equivalents were $247 million; net debt increased to $1.73 billion; liquidity at $773 million.

• Total backlog as of February 17, 2025, stands at $5.8 billion, with 55% of 2025 available days committed.

Outlook and guidance

• 2025 revenue guidance: $3.25–$3.45 billion; Adjusted EBITDA: $1.05–$1.15 billion; capital expenditures: $375–$425 million.

• Free cash flow expected to improve in 2025 due to lower CapEx; focus on dividends and share repurchases.

• 2025 jackup segment expected to contribute 10–15% of adjusted EBITDA; cash taxes projected at 12% of adjusted EBITDA.

• $40 million in remaining Diamond integration costs expected in 2025; $26 million in BOP lease payments anticipated.

• Inflation assumptions of 3–4% embedded in cost guidance; supply chain actively managing tariff risks.